Your HR and Payroll compliance and policy solution! Comply with federal, state, and international laws, find answers to your most challenging questions, get timely updates with email alerts, and more with our suite of products.

The release of the draft regulations does not launch an official rulemaking
process, according to the Department of Conservation's Division of Oil, Gas, and
Geothermal Resources (DOGGR). Rather, it begins a public discussion of the
nine-page document in preparation for the formal rulemaking that will probably
begin in early 2013, the agency said.

Hydraulic fracturing, or fracking, involves pumping water, sand, and
chemicals into shale formations at high pressure to enhance oil and natural gas
extraction.

Environmental groups and others concerned about the expanded use of the
process in California and elsewhere are pressing federal and state regulators
for aggressive controls to prevent environmental harm, particularly to
underground water supplies.

The proposed regulations would “spell out what you need to do when you engage
in hydraulic fracturing,” Jason Marshal, chief deputy director of the Department
of Conservation, told reporters on a conference call.

Posted on DOGGR's website, the proposed rules would set standards for
pre-fracturing testing to ensure wells and cement casings can withstand the high
pressures. Other provisions would require 10-day notice to state regulators;
monitoring during and after fracturing operations; and disclosure of well
locations and chemicals used to FracFocus.org. The rules also would clarify
state law and regulations on the handling and storage of fracturing fluids.

Chemicals deemed “trade secrets” would only have to be publicly disclosed in
the event of a spill or accidental release, as needed for an emergency response
or for medical treatments.

Repurposing of Current Standards

Much of the proposal repurposes existing standards that apply to construction
of oil and gas wells to ensure the cement casings would adequately prevent
chemicals and other pollutants from tainting underground water supplies.

DOGGR is not proposing to require hydraulic fracturing-specific permits,
Marshall said. The draft regulations are consistent with current state oil and
gas regulations, which focus on the construction of the wells and the various
activities related to the wells, Marshall said.

Much of the proposal focuses on ensuring the integrity of the cement casings,
which would protect underground water supplies, during and after the fracking
activities and when wells are used store wastewater.

One provision that would be unique to California is the requirement for
evaluation of wells near the hydraulic fracturing operations.

Fracking has been used in California for decades, mostly for the recovery of
oil, not natural gas. While state regulators and industry claim the state's
rules governing oil and gas drilling are adequately protective, the state has
never required disclosure of the chemicals used in fracking or the location of
the activities.

Group Says Risks Not Addressed

In a written statement, the Center for Biological Diversity said the draft
regulations “do little to protect the state's environment, wildlife, climate and
public health.”

The proposed regulations lack measures to protect people living nearby from
harmful air pollutants and toxic wastewater, nor do they require the capture of
methane, a potent greenhouse gas, the center said. Other flaws in the proposal
give well operators a “trade secrets” loophole to avoid reporting dangerous
chemicals and fail to require public notification of fracking activities.

DOGGR does not have authority to adopt air pollution and water quality
measures for hydraulic fracturing activities, the Department of Conservation's
Marshall said. Those measures would have to be addressed by other state and
local regulators, he said.

The agency said it plans to schedule several public workshops prior to
launching the formal rulemaking process.

All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.

Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)

Notify me when updates are available (No standing order will be created).